FILING YOUR TAX RETURN WILL NEVER BE THE SAME
January 22, 2020 - Douglas Myser
Filing your tax return will never be the same. After passage of the Tax Cuts and Jobs Act, and the expectation that tax return rates across the board would go down, it came as quite a surprise to many tax professionals, and their clients, to realize they actually had an increased tax bill. One aspect of the Tax Cuts and Jobs Act, is that many people will actually realize a tax increase, and preparing for, and planning out your taxes will be more important than ever. This tax cut was the first real overhaul of the tax code in nearly 30 years. President Donald Trump, who signed the bill into law at the end of 2017, championed the measure and reportedly wanted to dub it the "Cut Cut Cut Act." Indeed, the new law cut taxes across the board. It trimmed individual income tax rates, bringing the top rate down from 39.6% to 37%. Corporations also got relief, as their income tax rates fell to 21% from 35%. Filing your tax return will never be the same.
The federal law also raised the standard deduction for single filers to $12,000 in 2018 from $6350 for in 2017 (it went to $24,000 from $12,700 for married filing jointly) and limited certain itemized deductions for taxpayers. It also did away with personal exemptions: a $4050 deduction you once could claim for yourself and each dependent in your household. The kicker is that many of these provisions are temporary, so they will expire at the end of 2025. The Tax Cuts and Jobs Act made what was an abstract concept--the Internal Revenue Code--into hotly debated topic that left many Americans wondering whether they really get the tax cut they were promised. Filing your tax return will never be the same.
Withholding changes. In early 2018, the IRS and Treasury Department released its new withholding tables to reflect the tax overhaul. The tables are intended to work with a key form, known as a W-4, that determines the amount of income tax withhold from your pay based on whether your spouse works and the number of dependents you have at home.
If you owe taxes from claiming too many exemptions, we can help. We are a 36 year old Tax Resolution Company that is a leader in our industry. Our Tax Resolution Services are Nationwide. We can file any unfiled tax returns, then determine your options for Tax Relief in the IRS code, including the IRS Fresh Start Program, and all options not in that program. If the IRS Collection Division puts a IRS Wage Garnishment on you, we can deal with also. Call today for a free Tax Consultation so you can have the peace of mind you deserve. 1-888-689-7861